An Owner Is Required to Maintain a _____________ on a Project

question 23

Multiple Choice

An owner is required to maintain a _____________ on a project for the benefit of ________________.

• A)trust fund; suppliers of goods and services
• B)hold-back; subcontractors
• C)surplus; subcontractors
• D)hold-back; suppliers of goods and services
• E)right of action; subcontractors

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Definitions:

Budgeted Cost Systems

Accounting systems that use budgets to project the costs of operating a business, typically used for planning and control purposes.

Standards

Established requirements, specifications, guidelines, or characteristics to be used consistently to ensure that materials, products, processes, and services are fit for their purpose.

Product Costs

Direct costs attributable to the creation of a product, including direct labor, materials, and manufacturing overhead.

Cost Standards

Cost standards refer to pre-determined costs for products, operations, or projects, used as benchmarks for measuring actual performance or costs.